GitLab Q1 – GitLab reported $264.2 million in Q1 FY2027 revenue—up 23% year over year—with operating cash flow of $149.2 million. Alongside the upbeat numbers, the company announced it plans to reduce its full-time workforce by about 14% (350 employees) and exit 22 countr
On June 2, 2026, GitLab’s quarter ended April 30 arrived with a split-screen story: stronger revenue and cash flow on one side, and a major staffing unwind on the other.
The all-remote software company reported first quarter fiscal year 2027 revenue of $264.2 million, up 23% year-over-year from $214.5 million. It also posted operating cash flow of $149.2 million and non-GAAP adjusted free cash flow of $146.7 million.
Behind the financial headline, GitLab’s leadership tied the momentum to “agentic” software activity. “The agentic era is creating structural tailwinds for GitLab. and Q1 showed it clearly with accelerating platform activity and promising traction from GitLab Duo Agent Platform. ” Bill Staples. GitLab chief executive officer. said. He added that GitLab is positioned as a single platform for the full software lifecycle “with one control plane. one data model. and cloud and AI model neutrality. ” and said the largest customers are bringing new needs around security. governance. and orchestration at machine scale.
GitLab’s chief financial officer, Jessica Ross, framed the quarter as both growth and improved profitability. “Our team delivered a strong first quarter with 23% revenue growth and 2 points of operating margin expansion,” she said. She also pointed to flexibility to invest behind initiatives and to “returning capital to shareholders through our ongoing share repurchase program.”.
The numbers show that mix clearly. GitLab reported a GAAP operating margin of (6)% and a GAAP operating loss of $ (15.7) million for the quarter. compared with a GAAP operating margin of (16)% and a GAAP operating loss of $ (34.6) million a year earlier. On a non-GAAP basis. the operating margin was 14% versus 12% in the prior year. with non-GAAP operating income of $37.5 million compared with $26.1 million. Net results followed a similar pattern: GAAP net loss attributable to GitLab was $ (5.0) million. while non-GAAP net income attributable to GitLab was $39.0 million. On a per-share basis. GAAP net loss per share attributable to GitLab. basic and diluted. was $ (0.03). versus $ (0.22) in the first quarter of fiscal year 2026. Non-GAAP net income per share attributable to GitLab was $0.23 for both basic and diluted.
Customer metrics also strengthened. Customers with more than $5,000 of ARR reached 10,831, up 7% year-over-year. Customers with more than $100,000 of ARR reached 1,519, up 18% year-over-year. Dollar-Based Net Retention Rate was 117%. Total RPO grew 18% year-over-year to $1.1 billion, while cRPO grew 24% to $724.1 million.
GitLab’s product and platform push in the quarter added further detail to the upbeat tone. The company said it extended agentic AI across the software lifecycle with new automated security remediation. pipeline configuration. and delivery analytics. It also broadened access to GitLab Duo Agent Platform for free tier users. including flat-rate agentic code reviews and spending caps for predictable cost controls.
The release also highlighted deeper model integration. GitLab said it deepened integration with Anthropic’s Claude models, giving GitLab customers access to the latest Claude capabilities within the same governance, compliance, and audit framework that governs every other action in GitLab.
Partnerships were part of the quarter’s pitch as well. GitLab announced collaborations with AWS and Google Cloud to bring agentic DevSecOps to enterprise teams. The company said joint customers can power GitLab Duo Agent Platform with Amazon Bedrock or Vertex AI using the models. governance. and cloud commitments they already have in place.
The quarter included recognition too: GitLab received the 2026 Google Cloud Technology Partner of the Year Award in the Application Development – DevSecOps category for the sixth consecutive year.
Even the cash and capital moves had a familiar rhythm for investors. In the quarter, GitLab repurchased approximately 2.4 million shares.
But then came the event that pulled the story into a different register. GitLab said it is reducing its full-time workforce by approximately 14%. or 350 team members. to realign its operating structure to optimize execution against its strategic priorities. The company also expects to exit 22 countries to reduce its team member geographic footprint by approximately 37%.
The cost of that reset is not small. GitLab estimated it will incur approximately $30 million to $35 million in pre-tax restructuring charges. primarily one-time severance. employee termination benefit costs. and retention costs associated with the execution of the plan. About $19 million of those charges are expected to be incurred in the second quarter of fiscal year 2027. with the majority of the remainder expected to be recognized over the following three quarters. The company said it expects the plan to be substantially complete by the end of fiscal 2027. and that additional costs may be identified and disclosed when reasonably estimable.
The guidance for the next stretch landed with confidence—still, the job cuts hang over those projections. For the second quarter and fiscal year 2027. GitLab expects revenue of $272 to $274 million in Q2 FY2027 and $1. 112 to $1. 118 million for FY2027. Non-GAAP operating income is expected to be $30 to $32 million in Q2 and $135 to $141 million for the full year. Non-GAAP diluted net income per share is expected to be $0.17 to $0.18 for Q2 and $0.79 to $0.82 for FY2027. assuming approximately 168 million and 166 million weighted average shares outstanding during Q2 FY2027 and FY2027. respectively.
The contrast between expanding platform momentum and shrinking headcount is the tension the quarter leaves behind. GitLab’s release describes accelerating platform activity, new automated security capabilities, and broader access to agentic tooling. At the same time, it is preparing to shed 350 employees, exit 22 countries, and take restructuring charges totaling $30 million to $35 million.
For employees and customers alike, the message reads as a pivot rather than a detour: GitLab wants to move faster in its strategic priorities even if that means fewer people in fewer places.
Investors are set to get more detail during a conference call on June 2, 2026 at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss first quarter fiscal year 2027 results and guidance for the second quarter and full fiscal year 2027. A live webcast will be available on GitLab’s investor relations website (ir.gitlab.com). with a replay archived for one year.
GitLab’s broader company description also remained in view: it is the intelligent orchestration platform for DevSecOps. aimed at increasing developer productivity. improving operational efficiency. reducing security and compliance risk. and accelerating digital transformation. The company says more than 50 million registered users and approximately 50% of the Fortune 100 trust GitLab to ship better. more secure software faster.
The question now for readers who have watched GitLab’s numbers climb is the one the company can’t solve with a percentage point: whether the agentic push and platform expansion can carry the business forward quickly enough—after the restructuring—without slowing the momentum it reported for Q1.
GitLab Q1 FY2027 results agentic AI GitLab Duo Agent Platform DevSecOps restructuring charges workforce reduction AWS Google Cloud Anthropic Claude operating cash flow
Down 14% jobs… but growth??
So they made more money and still fired 350 people? Sounds like the company can’t manage people but can manage spreadsheets. Also “agentic” software… isn’t that just AI marketing?
I read that “agentic era” line and thought it meant like they’re gonna replace devs with bots or something. If revenue is up, why are they exiting 22 countries?? Maybe because those countries didn’t buy the AI thing, idk. My cousin said GitLab is all remote so cutting staff feels extra cold.
This feels like one of those tech earnings where they brag about cash flow and then quietly shuffle the workers. $264M revenue sounds huge but $350 employees isn’t nothing either. Also “one control plane” sounds like something my IT guy would say before the next outage… so are they fixing stuff or just changing the buzzwords?